How to Create a Profitable Pricing Strategy

You don’t need a fancy system, just a simple plan that works.

Quick tips to stop undercharging and start earning what you're worth

Pricing shouldn’t feel like a guessing game. If your rates don’t cover your costs, time, and a fair profit, you’ll always feel overworked and underpaid. The good news? A few simple steps can help you set prices that make sense and support your business.

Start With the Basics

Use this simple formula: Cost + Time + Profit = Price

Include:

• Materials and tools

• Software or subscriptions

• How long it takes to deliver the product or service

• A fair profit margin

And don’t forget, price for value, not just time. Ask yourself:

• Am I saving my client time or stress?

• Am I solving a meaningful problem?

Offer Tiered Pricing Options

Give clients flexibility with 3 clear levels:

• Basic: bare minimum, low price

• Standard: best value, most popular

• Premium: full service, highest price point

  
  

   Avoid These Common Mistakes

• Copying competitors without knowing their costs

• Charging what you would pay instead of what your clients are willing to

• Forgetting to raise your prices as your value grows

Review your pricing every 6–12 months and ask:

• Am I covering my costs?

• Am I attracting the right people?

• Am I being paid fairly for my time and results?

Bottom line: You don’t need perfect pricing, you need clear, confident, and sustainable pricing that reflects the value you deliver.